Technical Analysis Using Multiple Time Frame By Brian Shannonpdf Work -

When price pulls back to this "value zone" on the higher timeframe, the trader drops to the lower timeframe (e.g., 15-min) and waits for a reversal pattern (e.g., a hammer candlestick or a volume spike) to enter the trade. Shannon famously says, "Do not try to catch a falling knife; wait for the knife to hit the floor and stop bouncing." The lower timeframe trigger provides that "stop bouncing" confirmation.

Now, zoom in to the daily chart. Look for a pullback or consolidation. When price pulls back to this "value zone"

By comparing the price action on all time frames, we can conclude that XYZ has a long-term uptrend, a medium-term consolidation range, and a short-term bullish trading opportunity. a medium-term consolidation range